I have not talked about trading psychology for a while and today’s drop & pump session is as good an opportunity as any to cover something that can be rather disruptive to our daily trading activities. I am referring to an increasing observance of ‘crisis/drama addiction’. Although I am neither a psychoanalyst nor play one on TV it appears to me that during major economic contractions people across the board seem to be seeking out bad news or emotionally link themselves to geopolitical or macro-economical developments.

During the past two decades this development has greatly been aided by widespread Internet availability, thus offering easy and [...]

In my Friday post I told my subs to watch the AUD/JPY on Sunday afternoon with possible implications on the spoos opening later this evening:

Admittedly a lot can happen between now and Monday 9:00am EDT, but clearly we have NLBL that has thus far proven to be resistant. If you are short equities right now then that NLBL could serve you well as a hedge threshold.

Based on what I’m hearing out of Europe this weekend I devote this post to Germany – soon to be renamed the EU Charity Fund:

Of course I do have a few more charts for the subs:

Let’s zoom out first. About a month ago I mused about a possible repeat of the [...]

I have to admit that I don’t feel comfortable about the current tape in equities. Something just doesn’t ‘smell right’, which in itself is an alarming sentiment as I should fade all emotions and just stick with the facts, in other words my charts and the tape.

If was still counting waves then I would expect the current push higher to either stop right here and now, or to continue higher with much velocity, probably starting Monday. In a way this indecision does spell opportunity.

Let me explain the context here – as previously reported we have been landlocked in a 1270 – 1370 channel since early January and whatever side wins [...]

I’m seeing a huge divergence in two key market correlations. Maybe it’s just a disturbance in the evil force and we’ll have to follow up in a day or two – but it could be a harbinger of a nasty correction in equities.

Either way, Mr. Bigglesworth does not approve of today’s tape – which is why I have no choice but to issue an immediate Code Orange Evil Lair Alert: [amprotect=nonmember] Charts and commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero subscriber it includes access to all Gold posts, so you actually [...]